As the Covid-19 pandemic enters another year, many fear the economic environment will get worse before it gets better. As of October 2021, almost 23% of small businesses in the US said the pandemic had a largely negative effect on business; only 1.8% of respondents reported a large positive effect. Despite the ongoing fears and negative effects, small businesses that have been fighting for survival are seeing light on the horizon.

Without knowing with certainty when the pandemic will end, layoffs and closures are still a real option for businesses that are not financially stable. A Proceedings of the National Academy of Science survey found the average small business with more than $10,000 in monthly expenditures had only 2 weeks of cash on hand, and there is no guarantee of renewed funding through government programs.

As with any disaster there are pitfalls and opportunities. So how do business owners prepare for that reality?

• Preserve cash. Even in a good business climate, small business owners find themselves operating month-to-month, whereas large entities have millions and billions in cash reserves making a disastrous quarter or even year a storm they can weather. Going fully remote not only cuts cost by eliminating lease payments and utilities, it also give more flexibility with staffing. With continuation of the great resignation, companies can look to outsourcing firms to step in where traditional full-time staff once performed essential functions like accounting, payroll, and HR.

• Don’t be reactive. In a world of leaders on social media showing the risks they’ve taken to “win big,” it’s easy for small business owners to buy into the mindset of acting on impulse or gut feelings. Instead, moving forward in a deliberate manner is more the story of success for seasoned entrepreneurs. Small businesses, more so than enterprise level businesses, are more likely to feel pressure to take action based on the fear of losing their business. Resisting that urge is difficult. A much more strategic approach is being proactive instead of reactive. The best way to do that? Ask the experts (us) about strategic recovery now, and disaster-proofing your financial landscape now and going forward.

Whether the new surge is prolonged or the world goes back to normal soon, take a step back and analyze what has worked and has for business the past two years and consult with someone that has been helping others navigate forward.